Mrs. Maloney (for
herself, Mr. Pomeroy,
Mr. Engel,
Ms. Hirono,
Mr. Higgins, and
Mr. Space) introduced the following
bill; which was referred to the Committee
on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to impose a
100 percent tax on bonuses paid by businesses that receive TARP assistance and
are majority owned by the Federal Government.

1.

100 percent tax on bonuses
paid by businesses that receive TARP assistance and are majority owned by the
Federal Government

(a)

In
general

Section 1 of the
Internal Revenue Code of 1986 (relating to tax imposed on individuals) is
amended by adding at the end the following new subsection:

(j)

100 percent tax
on bonuses paid by businesses that receive TARP assistance and are majority
owned by the Federal Government

(1)

In
general

In the case of any
individual who receives a bonus during the taxable year from a covered TARP
person, the tax imposed by this section shall be equal to—

(A)

the tax which
would be imposed by this section if the taxable income of such individual for
the taxable year were reduced by such bonus, plus

(B)

the amount equal
to such bonus.

(2)

Bonus

For purposes of this subsection—

(A)

In
general

The term bonus means any payment in the
nature of a bonus which is paid by a person if—

(i)

such person (or
any predecessor of such person) received assistance under title I of division A
of the Emergency Economic Stabilization Act of 2008 during the taxable year or
any prior taxable year, and

(ii)

at the time such
bonus is paid the ownership interest of the Federal Government in such person
is—

(I)

in the case of a
corporation, greater than 50 percent of the stock of such person (by vote or
value),

(II)

in the case of a partnership, greater than
50 percent or more of the profits interests or capital interests in such
person, and

(III)

in any other
case, greater than 50 percent or more of the beneficial interests in such
person.

(B)

Exception

The term bonus does not
include compensation in the nature of a commission or salary.

(C)

Controlled
groups

(i)

In
general

For purposes of subparagraph (A), all persons treated as
a single employer under subsection (a) or (b) of section 52 or under subsection
(m) or (o) of section 414 shall be treated as one person.

(ii)

Inclusion of
foreign corporations

For purposes of clause (i), in applying
subsections (a) and (b) of section 52 to this section, section 1563 shall be
applied without regard to subsection (b)(2)(C) thereof.

(3)

Regulations

The
Secretary shall issue such regulations or other guidance as may be necessary to
carry out this
subsection.

.

(b)

Effective
date

The amendment made by this section shall apply to taxable
years beginning after December 31, 2008.